When commodity prices rise, how high can inflation go?
If behaviours are really inflationary, when commodity prices rise: Companies do not want their profit margins to fall; Employees do not want a loss of purchasing power. So consumer prices end up rising as much as commodity prices, which is the maximum inflation scenario.
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Natixis
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.